S&P rates YY BB+

Standard & Poor’s said it assigned a BB+ long-term corporate credit rating to YY Inc.

The agency also said it assigned a cnBBB+ long-term Greater China regional scale rating to the company.

The outlook is stable.

The ratings reflect YY’s small operating scale in a very niche market, high demographic concentration, a monetization model with a limited track record and heavy reliance on user-generated content, S&P said.

YY is exposed to high concentration risk because it targets a limited audience, the agency said.

YY operates fully in the online entertainment industry and derives all of its revenue from China, S&P said.

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